Inditex, the owner of Zara, has reported a surge in sales and profits for the first half of the year, defying cost of living pressures. The Spanish retail giant posted a net profit of €1.79bn for the six months to July, a 41% increase from the previous year, while sales rose nearly 25% to €14.8bn.
The company, which also owns Massimo Dutti, Pull&Bear, and Bershka, saw revenue growth across all regions. Chief executive Óscar García Maceiras attributed the strong performance to the company's unique fashion proposition, optimised shopping experience, focus on sustainability, and the talent of its employees.
Inditex's shares jumped 5% on the Madrid stock exchange following the results. The retailer said sales momentum continued in recent weeks, with its autumn and winter collections well-received. It plans to invest over €1bn this year in stores, online sales, and customer experience, aiming for online orders to account for more than 30% of sales by 2024.
The company closed all 500 of its Russian outlets in March due to the Ukraine invasion, incurring a €216m charge. It is also holding more autumn and winter stock to mitigate supply chain issues. In May, Zara introduced a £1.95 fee for online returns, which Victoria Scholar of interactive investor said had not significantly impacted demand, as Inditex successfully passed on cost increases through higher prices.
